The main financial advantages that debt consolidation provides is fairly clear. One payment is much easier to pay than numerous payments. But, there are several other money saving advantages to debt consolidation that you might not have even considered.

Let’s say that you have five credit cards that you are paying on every month. That means that you’re paying five separate interest charges every month which can be 18 percent or more on each balance. When you’re paying one payment on a consolidation loan, you’re only paying one interest charge.

Now, if you do have five credit cards and you’re late making the monthly payment on each one, you are charged with five separate late fees. If each credit card company charges a $30 late fee, that’s extra $150 each month the payment is late. Again, when you’re paying just one payment, you’ll only have one late fee.

On top of saving money on interest fees and penalties each month, when something does happen you will only have to deal with one financial institution instead of several. Debt consolidation is just a much simpler solution for paying your bills and keeping your credit in good standing.